A study on corporate sustainability performance evaluation and management: The sustainability balanced scorecard

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Abstract

In recent years, more and more companies have noted the significance of addressing serious social and environmental issues, and various sustainability strategies have been implemented to ensure sustainable competitive advantage. An urgent issue is how to integrate sustainability strategy-related goals and key performance indicators (KPIs) into performance evaluation and compensation systems, and how to integrate employees’ awareness of environmental protection and social contribution into their daily work. This study examines management tools that can link sustainability strategies with sustainability performance evaluation and compensation systems. Specifically, the balanced scorecard (BSC) is positioned as a management tool for measuring, evaluating, and managing sustainability performance, with a particular focus on the sustainability balanced scorecard (SBSC), which incorporates economic, environmental, and social factors. The purpose of this study is to clarify the role of sustainability performance assessment and management in sustainability management based on previous studies and cases of advanced companies that have introduced SBSC, such as the Generali Group, and to systematically evaluate the functions and usefulness of SBSC as a sustainability performance assessment and management tool. The findings indicate that the SBSC is an effective management tool for improving sustainability performance and implementing sustainability strategies.

Keywords: SBSC, Environmental Strategy, CSR Strategy, Sustainability Strategy, Sustainability Performance, Economic Factors

Authors’ individual contribution: Conceptualization — I.A. and N.A.M.S.; Methodology — M.U.; Formal Analysis — S.S.; Investigation — A.B. and R.G.; Writing — Original Draft — I.A.K. and A.B.; Writing — Review & Editing — I.A.K. and A.B.; Supervision — A.K.; Project Administration — A.I.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M10, M14, M19, O35

Received: 22.02.2022
Accepted: 19.04.2022
Published online: 21.04.2022

How to cite this paper: Ali, I., Sami, S., Senan, N. A. M., Baig, A., & Khan, I. A. (2022). A study on corporate sustainability performance evaluation and management: The sustainability balanced scorecard. Corporate Governance and Organizational Behavior Review, 6(2), 150–162. https://doi.org/10.22495/cgobrv6i2p15